RANCHO CUCAMONGA >> City leaders have paved the way for the development of a 140-unit senior affordable housing near Base Line Road, just west of Day Creek Boulevard.

Although the development is at least two years away from construction, the City Council last week unanimously agreed to enter into a loan agreement with Day Creek Senior Housing Partner Mgp, LLC.

When the building permits and financing for the $37 million housing project are completed in 2018, it will mark one of the last agreements the city will enter into for new affordable housing.

Linda Daniels, Rancho Cucamonga assistant city manager, said there is a proposal the city is pursuing with another nonprofit of an existing development that would add units.

“As far as a new construction … this would probably be it,” Daniels said, adding there is no other undeveloped property available.

“Our region is facing a housing crisis, as far as housing affordability,” Mayor Dennis Michael said. “That’s one of the tragedies of losing the redevelopment agency. It was able to provide these tools.”

The Legislature killed redevelopment agencies statewide in the height of the Great Recession, redirecting funds to other agencies.

The rental rate for one- and two-bedroom units would range from $350 to $750 a month. That compares to local at-market rates of $1,350 for a one-bedroom unit and $1,700 for a two-bedroom unit, Daniels said.

Rancho Cucamonga entered into the loan in its capacity as the Housing Successor agency to the now-defunct Rancho Cucamonga Redevelopment Agency, she said.

In September 2014, the successor agency sold a 14-acre property on the northwest corner of Base Line Road and Day Creek Boulevard to a developer. The transaction included the permits for a commercial shopping center on 10 acres of the 14 acres, and the remaining parcel could be allocated to develop affordable senior housing.

The developer was given a year to determine if it wanted to pursue the latter option of building senior housing. Daniels said the developer last year conveyed the property to the housing successor at no cost. City officials said the shopping center is still in the planning process.

As part of the agreement, the city will contribute the land and $4.2 million in remaining housing bond proceeds that were sold in 2007. The deal also outlines the roles of the developer to obtain the additional funding needed for the $37 million project, Daniels said.

The managing partner for the project will be National Community Renaissance, also known as National CORE, which manages several other affordable senior housing units in the city.

“We picked a good partner to go into senior housing with,” said Councilman Sam Spagnolo.